Rahul Kumar Shaw Vs Union of India And Ors. (Calcutta High Court)
The writ petition challenged the legality, validity and sustainability of the notice issued under Section 148 of the Income Tax Act, 1961, along with the order passed under Section 148A(3) dated 30.06.2025 for Assessment Year 2020-21.
The Court identified two core issues: whether the notice under Section 148 for Assessment Year 2020-21 was barred by limitation under Section 149(1)(a) of the Act, and whether it was saved by the extended period under Section 149(1)(b) on the ground that the income escaping assessment amounted to or was likely to amount to ₹50,00,000 or more.
The petitioner submitted that the notice under Section 148 had been issued after the expiry of three years and three months from the end of the relevant assessment year and was therefore barred by limitation. It was contended that Section 149(1)(a), as substituted by the Finance Act, 2021 with effect from 01.04.2021, prohibits issuance of a notice under Section 148 after three years from the end of the relevant assessment year unless the case falls under Section 149(1)(b). The petitioner further submitted that Section 149(1)(b) permits issuance of a notice beyond three years but within ten years only where the Assessing Officer possesses books of account, documents or evidence revealing that income represented in the form of assets escaping assessment amounts to or is likely to amount to ₹50,00,000 or more.
